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Home My WebLink AboutCOM 0141.003 2008-2010 P O 1A1 N,4b~iG ~-~C(~Yl vl ~ Murashige, Laura From: Michael Kramer [michael@naturalinvesting.com] M1 FEB 12 PSI 12 07 Sent: Thursday, February 12, 2009 10:40 AM To: counciltestimony@co.hawaii.hi.us Crl lti P L; L=:I"'' 1clu I v i 4 HANIVNI Cc: kforissier@co.hawaii.hi.us Subject: Testimony for Februiary 17, 2009 Public Hearing on Bill 385 Attachments: Bill 385 Testimony Feb 17 2009.doc Please accept the attached testimony in support of Bill 385. 1 will be present at the public hearing on February 17 to provide oral testimony. Thank you, Michael Kramer 77-6523 Ho'olaupa'i St Kailua-Kona, HI 96740 331-0910 Michael Kramer, AIFR, Managing Partner and Director of Social Research NATURAL INVESTMENTSLLc Portfolio Management for Individuals, Foundations, Non-Profits and 401(k) Plans Nationwide Exclusively Using Socially Responsible Investments 331-0910 888-779-1500 (Toll-free) www.Natu raltnvestingcolnWinner of the 2008 Kuleana Award from the Kona-Kohala Chamber of Commerce for "green business of the year'. Ku eania 4n]sg4Hxi-yf F[44L~.W "Be the change you wish to see in the world. " Natural Investments LLC is an Investment Adviser registered with the Securities and Exchange Commission. A Please consider the environment before printing this email. Please call me if you have not received a response to your email within a reasonable time, as it may have been filtered out by mistake. Comm. No. Ref. Tor 1441iW4W Wif G Ref. Date - 'ZOOS 2/12/2009 NATURAL INVESTMENTS=c February 17, 2009 County Council Public Hearing Re: Adoption of Bill 385, An Ordinance Amending Chapter 5, Article 2 of the Hawaii County Code, Relating to Building Energy Efficiency Standards Members of the Hawaii County Council, Thank you for the opportunity to provide testimony on Bill 385, which effectively adopts the International Energy Conservation Code of 2006 (IECC 2006) as the building code for Hawaii County. I attended the Council meeting last year when the Sustainability 2050 Task Force report was presented, and I appreciated the Council's concern about food and energy security and sustainability. I specifically recall Council members noting that the Task Force report lacked the sort of specific action steps that the Council could take. Bill 385 provides one such immediate opportunity that can make an enormous difference regarding energy sustainability for the people of Hawaii Island. As you may know, last year Mayor Kim convened a 5-member Hawaii County Energy Advisory Commission (the Commission) to help prioritize the recommendations from the Hawaii Island Energy Sustainability Plan, which the Administration adopted in October, 2007. I served on the Commission as its Vice-Chair, and while we only had six months to evaluate the Plan and attempt to prioritize its many recommendations, we did produce formal recommendations in the areas of Transportation and Biofuels, Buildings, Water Supply and Use, Utilities, and Planning Considerations. While the Commission's tenure was brief given Mayor Kim's term expiration, and the new Administration has yet to reconvene the Commission as has been recommended, the Energy Advisory Commission Final Report provided to Mayor Kim in November, 2008 has also been provided to Mayor Kenoi. In that Report, the Building Subcommittee, which I chaired, established as its #1 priority the adoption of the IECC 2006. The report states, on page 3-1: Adopt the IECC-2006 Model Energy Code. While the Hawaii State Building Council works through its modifications suited to Hawai'i, we should adopt this internationally-recognized standard immediately, as its provisions will have an immediate positive impact. Once the State Building Code modifies the Code to suit Hawaii climactic characteristics, the administration can re-examine the new code and make changes as necessary. Once adopted, the state will require each county to adopt the IECC-2006 or a more stringent version within 2 years. Michael Kramer, M.Ed. Financial Advisor, Accredited Investment Fiduciary` michael@naturalinvesting.com www.naturaiinvesting.com PO Box 390595, Keauhou, HI 96739 808.331.0910 - 888.779.1500 "Put Your Money Where Your Heart Is" , J41 .r NATURAL INVESTMENTSLIc While the Hawai'i County Building Division is concerned about the added costs of energy efficiency and its specific impact on low-income residents, the Commission believes that incentives and education could sufficiently address these concerns by highlighting the true life-cycle costs andpayback periods of the various strategies recommended, which ultimately will result in significant cost savings to County residents and businesses. Included in this recommendation were some specific amendments regarding natural lighting requirements, proper roof ventiliation, radiant barriers and overhangs, high insulation requirements for central air-conditioned homes, motion-sensing CFLs in windowless closets and rooms, and higher minimum efficiency ratings for air conditioning units. There are several key points I wish to emphasize: 1. We should not wait for the State Building Council to complete its ongoing review of the IECC 2006. There is no timeline established for completion of this review, and there is a lack of staffing at that Council at this time to facilitate it. As it could be years before this is complete, time is of the essence and Hawaii County should move ahead and adopt the IECC 2006 as is and make any modifications at a later date. 2. The cost savings from the adoption of the IECC 2006 is estimated to be an average of 25% in annual operating costs. While some may suggest that certain provisions in this code will result in higher construction costs, it is well documented by the US Green Building Council that the life cycle operational cost savings from these measures far outweigh the initial capital outlay. In other words, everyone will save money in their utility bills every month, resulting in a net cost savings after an average of 5 years. What could be more important in these economic times? 3. The IECC is realistic and achievable. The techniques, technologies, and appliance standards referenced in the IECC 2006 are readily available and can be implemented without delay. Adoption of this Code is appropriate given what is available in the marketplace. Michael Kramer, M.Ed. Financial Advisor, Accredited Investment Fiduciary'" michael@naturalinvesting.com www.naturalinvesting.com PO Box 390595, Keauhou, HI 96739 808.331.0910 - 888.779.1500 "Put Your Money Where Your Heart Is" ~f NATURAL INVESTMENTS L« Thank you for your interest in updating the Code from 1983's obsolete standards. Despite the recent drop in the price of oil, economists and oil executives believe it is a temporary phenomenon and that Peak Oil is likely to be achieved in the next 5 years. Oil prices are therefore expected to increase dramatically, which means that the spike of last summer is not an anomaly, but an indicator of an emerging trend. As an investment advisor who focuses on these issues every day in my profession, 1 assure you that this is already a crisis, and we must respond with strong and decisive action. We are vulnerable, and we can change that. As the County's Energy Sustainability Plan clearly and properly notes (see graph below), the need for oil over the next 20 years will come from energy efficiency measures. The IECC 2006 has the potential to dramatically reduce energy costs and our dependence on oil. For this and all the other reasons mentioned herein, I strongly urge the Council to adopt Bill 385 and accept the IECC 2006 for Hawaii County. Mahalo, Michael Kramer 50 11T. n.mosim "Imordeal Futwe ¦New msh erd hl 45 _ _ _ _ _ _ _ _ _ _ tvlcin6 dfdrncY pYlNN SRcercv O CmsrtsrciN, WNic S. 4 - - 2 iaing dfirimry j Olmss vanrsil c 3p - - - - ?Cfi.dislhy C roans OPnEY nN rMU[liur Cc _ 1 Irioiryry ZO W - ¦Svhrwdarncterc ~exist'% tI,mli. rg t5 - _ D'cniwlm t q,NowlNc OBilivNS m6wlld 10 transpal o DidvNS inPw.vr a11..cla 5 NaC(pCIN AVIOIIM 11N 0 ~v pp pQ R g~ iX ffi 25 25 25 0 0 ~ nbi ~ OPrcsit srwne Vanippltt N N N N N N N N OFwsIIN Vhily Fia-mv E43: Primary onG•~y use ul IlmYai'i C.aunly 1Yith fulum cavgy efficiency and 1!l'tll`11'ahl L' Glel'(;y aehatlti Michael Kramer, M.Ed. Financial Advisor, Accredited Investment Fiduciary'"t ' michael@naturalinvesting.com www.iiaturalinvesting.com PO Box 390595, Keauhou, HI 96739 808.331.0910 - 888.779.1500 "Put Your Money Where Your Heart Is"